A significant increase in open interest has led to Bitcoin crossing $31,000 once more.
In only two hours, open interest, a measure of unresolved futures contracts, increased by more than $300 million. This shows that trade volume and speculative interest in cryptocurrencies have significantly increased.
Analysts predict a more ferocious price swing as a result of market suppression. According to the theory, when a price finally breaks free, the response will be more spectacular the longer and tighter it has been suppressed. This perspective is supported by the current market action, which looks to be a positive recovery after Bitcoin’s price was under pressure.
Bitcoin’s ascension past the $30,000 threshold, according to Glassnode co-founder Yann Allemann, is a big milestone. The cryptocurrency now confronts important resistance above the $30,500 level, according to market watcher Negentropic. There is increasing purchasing pressure, and the trend-following momentum indicator MACD (moving average convergence divergence), which crosses above the “0” mark, shows that the momentum is turning in favour of the bulls.
If Bitcoin can surpass the resistance levels of $32,500 and then $34,000, it may signal the beginning of a greater bullish trend.
In other news, Pantera Capital CEO Dan Morehead noted that the correlation between Bitcoin and the S&P 500 has reverted to zero, indicating that Bitcoin is now moving independently of the larger stock market.
Bitcoin may become a desirable hedge against anticipated volatility in these established markets as a result of this decoupling.
